From: GAETZ.DON.WEB [mailto:GAETZ.DON.WEB@flsenate.gov]
Sent: Wednesday, February 18, 2009 1:20 PM
To: Gaines, Dodi
Subject: RE: Florida's Education Crisis


Thanks very much for your email and for sharing your thoughts regarding
the serious national and international financial crisis which is
affecting our state and, consequently, education funding at the state
and local levels.

I certainly agree with you that a child's education is very difficult to
postpone or cut back. That's why for 32 years in a row per pupil
education funding has increased year over year. It has only been now --
when all of us are experiencing the impact of the worst economic
downturn in a generation -- that funding has been reduced. The reason
is not a lack of interest or commitment in education but the fact that
our state constitution requires spending to be reduced dollar for dollar
with revenue reductions. And, as I'm sure you know, state revenues have
already declined by $10 billion in the last 30 months with more declines
inevitable as the economy worsens.

Aside from the historically bad economy, one of the other reasons there
are less dollars for education is because there are nearly 40,000 fewer
students in K-12 public schools than in 2005-2006. When student
enrollment drops, funding drops because taxpayers are understandably
reluctant to pay schools to educate students who are no longer there.
The enrollment decline, by itself, accounts for about $280 million in
reduced funding for public schools.

As a lifelong advocate for public education, I can't respond to your
email with vague promises which can't be kept or by blaming someone
else. The truth is that there won't be more money for education until
the economy improves. The truth is that as long as the economy
continues to worsen, there will be less money for schools, health care,
services for the elderly and children, law enforcement and every other
public purpose. The Governor is discussing pay reductions and
give-backs from state employees who, by the way, have not had any
increase in compensation (no STEP, no raise) for two years already.

My own view is that the least policy-makers should do is provide as much
budgetary flexibility as possible. What resources are available should
be able to be deployed -- within reason -- as is best determined
locally. That's why I favor reducing categorical funding restrictions
at the federal, state and local levels. Last year I sponsored and the
Legislature passed the "High Performing School Districts Act" which
allows districts with strong academic and financial management records
more freedom to decide how to use funds. This session I'll do all I can
to expand that legislation.

Among my Senate assignments this year is to serve as Chair of the Select
Committee on Florida's Economy. Of course, Florida can't come out of
this recession alone and government doesn't create prosperity. But the
job of our committee is to eliminate those obstacles under state control
or influence which may be inhibiting businesses from surviving or
growing and to emphasize those business incentives which could help
Florida come out of this downturn sooner and stronger. There are no
quick solutions or magic answers but our committee's job is to try to
improve the odds for Florida businesses and families who generate the
dollars which pay the taxes which support our schools and other critical
public purposes. If you'd like, I will be pleased to keep you updated
about our proposals.

Meanwhile, please accept my thanks -- as a parent -- for what you do
every day. And please feel free to be in touch with me any time. Your
comments, criticisms and guidance will help me do a better job in the
Senate.

Respectfully,

Senator Don Gaetz
All of the letters received from officials so far indicate 1. no intention or inclination to raise ANY taxes (citing economy) 2. they disagree that we are 50th in funding because they are not using per capita census figures. Read scans above.


Dear Ms. Crosby:
Thank you for writing to Governor Charlie Crist regarding Florida’s budget situation. The Governor appreciates hearing your views and has asked that I respond on his behalf.
The state’s Revenue Estimating Conference is predicting a significant shortfall for the current fiscal year. (http://edr.state.fl.us/conferences/generalrevenue/groutl.pdf) The Governor has looked at all options available to him to balance the budget, including cutting spending and using available trust fund reserves. His proposal included the following:
· Cutting state spending by $561.5 million.
· Taking $325.3 million from reserves.
· Issuing $314 million in bonds for prison construction.
· Using $88.9 million of unspent construction money.
· Pulling $290.3 million from the budget-stabilization fund.
· Borrowing $600 million from the Chiles Endowment.
· Tapping $135 million in new gambling revenues from Seminole casinos.
At this time, the Governor is not supportive of any tax increase. Of course, the just completed special session has produced the Legislature’s proposal to fixing the shortfall; the Governor has reviewed it and signed it, but vetoed roughly $90 million in cuts. For details, please see: http://www.flgov.com/2009a_legislative_actions.
The Governor’s Office is in the process of preparing the Governor’s recommendations for the fiscal year2009-10 budget. The Governor has asked for a delay in submission to be fully able to incorporate any stimulus money from the federal government. His budget will be released about February 13, 2009.
One note about the list provided by you: Florida’s Constitution prohibits an Estate Tax, unless the federal government provides it as a credit against its tax; since there is no federal tax, there can be no state estate tax.
If you have any questions or comments, please feel free to contact me by email at Christian.weiss@laspbs.state.fl.us or by calling me at 850-487-0102. Again, on behalf of Governor Charlie Crist, thank you very much for your thoughts.
Sincerely,
Christian Weiss
Chief Economist
Office of Policy and Budget
Governor Charlie Crist